(April 14, 2004)

THE PRESIDENT: I'm pleased to welcome Prime
Minister Sharon back to the White House. For more than 50 years,
Israel has been a vital ally and a true friend of America. I've been
proud to call the Prime Minister my friend. I really appreciate our
discussions today. The policy of the United States is to help bring
peace to the Middle East and to hope -- bring hope to the people of
that region.

On June 24,
2002, I laid out a vision to make this goal a reality. We then drafted
the road map as the route
to get us there. The heart of this vision is the responsibility of all
parties -- of Israel, of the Palestinian people, of the Arab states
-- to fight terror, to embrace democracy and reform, and to take the
necessary steps for peace.

Today, the Prime Minister told me of his decision
to take such a step. Israel plans to remove certain military installations
and all settlements from Gaza, and certain military
installations and settlements from the West
Bank. These are historic and courageous actions. If all parties
choose to embrace this moment they can open the door to progress and
put an end to one of the world's longest running conflicts.

Success will require the active efforts of many nations.
Two days ago, I held important discussions with President
Mubarak of Egypt. And I
will soon meet with King
Abdullah of Jordan.
We're consulting closely with other key leaders in the region, in Europe,
and with our Quartet partners -- the EU, Russia, and the United Nations.
These steps can open the door to progress toward a peaceful, democratic,
viable Palestinian state. Working together, we can help build democratic
Palestinian institutions, as well as strong capabilities dedicated to
fighting terror so that the Palestinian people can meet their obligations
under the road map on the path to peace.

This opportunity holds great promise for the Palestinian
people to build a modern economy that will lift millions out of poverty,
create the institutions and habits of liberty, and renounce the terror
and violence that impede their aspirations and take a terrible toll
on innocent life.

The Palestinian people must insist on change and on
a leadership that is committed to reform and progress and peace. We
will help. But the most difficult work is theirs. The United States
is strongly committed, and I am strongly committed, to the security
of Israel as a vibrant Jewish state. I reiterate our steadfast commitment
to Israel's security and to preserving and strengthening Israel's self-defense
capability, including its right to defend itself against terror.

The barrier being erected by Israel as a part of that security effort should, as
your government has stated, be a security, rather than political, barrier.
It should be temporary rather than permanent, and, therefore, not prejudice
any final status issues, including final borders. And its route should
take into account, consistent with security needs, its impact on Palestinians
not engaged in terrorist activities.

In an exchange of letters today and in a statement
I will release later today, I'm repeating to the Prime Minister my commitment
to Israel's security. The United States will not prejudice the outcome
of final status negotiations. That matter is for the parties. But the
realities on the ground and in the region have changed greatly over
the last several decades, and any final settlement must take into account
those realities and be agreeable to the parties.

The goal of two independent states has repeatedly
been recognized in international resolutions and agreements, and it
remains the key to resolving this conflict. The United States is strongly
committed to Israel's security and well being as a Jewish state. It
seems clear that an agreed, just, fair and realistic framework for a
solution to the Palestinian refugee issue, as part of any final status
agreement, will need to be found through the establishment of a Palestinian
state and the settling of Palestinian refugees there, rather than Israel.

As part of a final peace settlement, Israel must have
secure and recognized borders which should emerge from negotiations
between the parties, in accordance with U.N. Security Council Resolutions
242 and 338. In light
of new realities on the ground, including already existing major Israeli
population centers, it is unrealistic to expect that the outcome of
final status negotiations will be a full and complete return to the armistice lines of 1949.
And all previous efforts to negotiate a two-state solution have reached
the same conclusion. It is realistic to expect that any final status
agreement will only be achieved on the basis of mutually agreed changes
that reflect these realities.

I commend Prime Minister Sharon for his bold and courageous
decision to withdraw from Gaza and parts of the West Bank. I call on
the Palestinians and their Arab neighbors to match that boldness and
that courage. All of us must show the wisdom and the will to bring lasting
peace to that region.

Mr. Prime Minister, welcome to the White House.

THE PRIME MINISTER: Thank you. Thank you so much.
I want to thank you, Mr. President, for your warm welcome and your strong
support and friendship for the state of Israel.

I came to you from a peace-seeking country. Despite
the repeated terror attacks against us, the people of Israel continue
to wish for the achievement of a viable peace in accordance with our
Jewish tradition as outlined by Israel's prophets.

Our people's desire to be known for its achievements
in the fields of culture, science, and technology, rather than in the
battlefield. We are committed to make any effort to develop our country
and society for our own benefit and for the benefit of the peoples of
the region.

In our meeting today, I presented to you the outlines
of my disengagement plan. It will improve Israel's security and economy and will reduce
friction and tension between Israelis and Palestinians. My plan will
create a new and better reality for the state of Israel. And it also
has the potential to create the right conditions to resume negotiations
between Israel and the Palestinians.

I was encouraged by your positive response and your
support for my plan. In that context, you handed me a letter that includes
very important statement regarding Israel's security and its well being
as a Jewish state. You have proven, Mr. President, your ongoing deep
and sincere friendship to the state of Israel and to the Jewish people.

I believe that my plan can be an important contribution
to advancing your vision, which is the only viable way to achieve the
peace and security in the Middle East.

I wish to end with a personal note. I, myself, have
been fighting terror for many years, and understand the threats and
cost from terrorism. In all these years, I have never met a leader as
committed as you are, Mr. President, to the struggle for freedom and
the need to confront terrorism wherever it exists. I want to express
my appreciation to you for your courageous leadership in the war against
global terror and your commitment and vision to bring peace to the Middle
East.

Thank you, Mr. President.

THE PRESIDENT: Thank you, Mr. Prime Minister. Good
job, good job.

THE PRIME MINISTER: Thank you.

THE PRESIDENT: We will answer two questions aside,
starting with the American side. The Prime Minister will call on somebody
from the Israeli press at the appropriate moment.

THE PRIME MINISTER: If there will be any, there's
no --

THE PRESIDENT: There may not be any questions from
the Israeli press, is that what you're saying? (Laughter.) It's not
the case from the American press.

Terry Hunt.

Q Thank you, Mr. President. I'd like to go back to
your opening statement and ask you, does the United States recognize
Israel's right to retain some Jewish settlements in the West Bank? And,
if so, how does that fit with the U.S. policy that settlements are an
obstacle to peace?

THE PRESIDENT: First, let us recognize that the Prime
Minister has made the decision to dismantle some settlements. In other
words, he is beginning to implement a vision that allows for contiguous
territories so that a Palestinian state can emerge.

And this is an important step today. It accelerates
the process. See, I view it as creating an opportunity, an opportunity
for those of us who believe that a Palestinian state should emerge;
a peaceful Palestinian state to work to put a framework for such a state
to exist, so that the institutions of such state are bigger than the
people. See, when you have a government where the person is bigger than
the institutions, that government will inevitably fail. It's when the
institutions are bigger than the people that you're able to have continuity
and people's hopes and aspirations realized, and peace.

It is very important for a Palestinian state to emerge
in which we have confidence, in which any Prime Minister of Israel has
confidence, in which the United States has confidence, that will be
a peaceful partner. And so what the Prime Minister has done is he started
the process of removing settlements from the West Bank.

Your question to me is about the final status agreements.
I said that the conditions on the ground have changed over time, and
obviously, that must be recognized during any final status negotiations.

You know, I look forward to the moment when we're
actually discussing final status negotiations. There's a lot of work
to be done prior to getting there. And what the Prime Minister has done
is started the process. And now it's up for responsible Palestinians,
caring Europeans, Americans, the United Nations to step in and help
develop such a state that will be a peaceful state, one in which money
will actually end up helping the people of the Palestinian -- Palestinians
to be able to grow their businesses and grow their -- find wealth for
their families.

And then we can worry about the final status negotiations.
In other words, there's a lot of work to do. What the Prime Minister
has done is started the work, and we're prepared to help with the work.

THE PRIME MINISTER: Thank you. The same question for
me?

THE PRESIDENT: Right over here.

THE PRIME MINISTER: Oh, there's another question?

THE PRESIDENT: You ask for one of the Israeli press.
You don't have to answer their questions if you don't want to. (Laughter.)
I'm sorry, you didn't ask him one. No, it's too late. I'm protecting
my friend here from the appetite of the American press.

THE PRIME MINISTER: I'm afraid we have the same problem.
(Laughter.)

THE PRESIDENT: It's not a problem, it's an opportunity,
Mr. Prime Minister. (Laughter.) Go ahead and ask a question from your
press corps.

THE PRIME MINISTER: Thank you.

Q Mr. President, may I ask a question, please?

THE PRESIDENT: It's up to the Prime Minister, but
if it was up to me, of course you can.

Q I would like to ask you, please, first.

THE PRESIDENT: Please, what is it?

Q Sharon's political future depends largely on the
Americans quid pro quo, so still I'm asking on this issue, could you
clarify the ambiguity surrounding few key issues, as the settlements,
for example. In your eyes, Ariel is going to be on the Israeli side
of the fence. I wanted to ask about the right of return, but your answer
was quite clear there.

(Speaking Hebrew.)

THE PRESIDENT: Let me say this to you, his future
doesn't depend upon me. His future depends upon his capacity to convince
the Israeli people he's doing the right thing, and I think he is. He's
a bold leader. That's what people want. They want leadership.

There is a process that got stuck, and the Prime Minister
steps up and leads. And I'm confident the Israeli people appreciate
that kind of leadership.

You can answer the question if you care to, but I
don't buy the premise that what I say helps him get elected. What he
says helps him get elected. It's his vision of Israel that the people
of Israel will be looking toward.

THE PRIME MINISTER: Thank you. First, I will answer
in Hebrew.

(Speaking Hebrew.)

The question was, did I take a risky decision. So
my answer is that when the issue is the security of the state of Israel,
which I am fully responsible to, and political and economic future of
the state of Israel, I believe that personal issues like personal security
is not to be taken in consideration; this is not the issue.

And I would say that what I have learned from my visit
here, that the plan, disengagement plan, contributes to the security
of Israel, contributes to the political situation of Israel in the world,
and helps our economy. Therefore, I think that those questions of personal
risk has not been taken into consideration. We have to look into the
interests of the state of Israel.

Q Former President Jimmy Carter said last week that
he feels U.S. Middle East policy is tilted too much toward Israel. Is
that a fair criticism?

PRESIDENT BUSH: U.S. Middle East policy is tilted
toward peace. And the best way to achieve peace is to fight terror.
And I'm the first American President ever to have articulated the creation
of a Palestinian state. And the reason I did so is because I believe
a Palestinian state, when properly done, will be -- provide enough hope
for people, provide a peaceful avenue for those who aspire for a better
future. And I also believe it's in Israel's interest that there be a
Palestinian state which develops in a peaceful way.

Every statement I've said, I said all parties must
assume responsibilities. The Palestinians have got to assume the responsibility
of fighting off terror. If they want a state which provides a hopeful
future for their people, they must fight terror. They must be resolute
in the fighting of terror.

Israel has responsibilities. Today the Prime Minister
stepped up to those responsibilities. He started a process that I believe
can be a hopeful process. The Arab world has got responsibilities to
help not only fight terror, but to provide hope for a peaceful Palestinian
people. Those are responsibilities. America is assuming responsibilities.
My position on Middle East peace is quite clear.

Final question, from the Israeli press.

Q (Speaking Hebrew.)

And Mr. President, if I may, is what you said about
the Palestinian refugee mean that you deny unconditionally the -- what's
it called -- the right of return of Palestinian refugee to the state
of Israel?

PRESIDENT BUSH: My statement -- refer back to my statement
that I said, and also look at the letter that I sent the Prime Minister.
It will clarify my position on the issue.

PRIME MINISTER SHARON: (Speaking Hebrew.)

I mentioned first that I got from you, Mr. President,
a letter. And I sent you a letter. And in these letters, all those issues,
all those details are very clearly described in those letters. And I
suggested also on your behalf that they will read the letters.

PRESIDENT BUSH: Thank you.

PRIME MINISTER SHARON: That's the first thing. I was
asked by the Israeli media if I would say the things they held here,
or were discussed here, or have been concluded here, will provide me
a weapon against my colleagues in the government or the members of my
party in Israel.

So my answer was that I was never looking for weapons
to use against my colleagues in the government or against the members
of my party. I agree that I've been using weapons for many years, being
a soldier for many years, against the enemies of the state of Israel.
And I never hesitated, and I will not hesitate also in the future, to
use weapons if it will be needed in order to defend the citizens of
Israel, their life, their normal life, their development, and so on.

And, therefore, I say that I don't need for that.
I believe that our discussion today providing the needed security and
hope for the future of the state of Israel and the future, I would say,
of the region.